Upscale Property Owners are Seeing the Upside of AuctionsMarch 15th, 2011 by PA - Bloger
The owners of this luxury property are taking part of the latest growing trend in real estate auctions. Now, not only are commercial and residential property owners cashing in on the expediency and profitability of real estate auctions, but owners of upper tier homes and properties nationwide are jumping on the auction bandwagon. With the real estate market still highly unpredictable and lagging in sales, the speed and accelerated marketing plan of the auction method is attracting scores of sellers. Craig King, President and CEO of J.P. King Auction Company, states that sellers are “…usually looking for a date-certain transaction. The uncertainty and length of time a home can stay on the market in traditional sales processes — along with the difficulty pricing these one-of-a-kind properties — make a luxury auction with an intensive marketing plan the most viable option.”
Charleston Regional Business Journal reports, “Auction companies have said that no-reserve auctions have become more popular since the economy and real estate markets toppled… The instability has made it difficult for buyers and sellers to agree on a fair price.” With the market being oversaturated with luxury properties, these homes can be on the market for literally two years or more. Many owners of these properties aren’t necessarily in financial distress – they just consider it bad business to pay the overhead and taxes of these mammoth homes indefinitely. Auctions provide a lucrative solution – an aggressive marketing strategy, little to no negotiations and a room full of pre-qualified buyers are all too good to pass up.
The luxury properties being sold via auction span the country – from beachfront properties in Hawaii and Florida, to ski resort-type estates in Colorado and Montana. Even celebrities are seeing the benefits – according to Luxist.com, last year Concierge Auctions successfully auctioned singer/actress Cher’s home in the upscale Hualalai Resort in Hawaii for $8.72 million. Recognizing this area of growth, many auction companies are focusing on this facet of real estate. J.P. King Auction Company, Grand Estates Auction Company, Concierge Auctions and Premiere Estates Auction Company are just a few that specialize in this niche of real estate.
This surge in yet another area of real estate auctions further proves that real estate owners who want to sell a residence, commercial property, luxury estate or parcel of land are seeing the auction block as the quickest and most cost-effective way to close the deal.
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